AT&T adds 2.8 million wireless customers in Q4; net profit slumps by 58.6%

28 Jan 2011

US telco AT&T has reported consolidated revenues of USD31.4 billion for the three months ended 31 December 2010, a rise of 2.1% compared to the same period a year earlier, and is the company’s fourth consecutive quarter with a year-on-year revenue increase. Wireless revenues accounted for the lion’s share of revenues in 4Q10, rising 9.6% to USD13.8 billion; wireless data revenues, including SMS, rose 8.7% year-on-year to USD7.1 billion. In contrast fixed line voice revenues slumped 12.8% to USD6.6 billion. Net profit for the quarter dropped 58.6% to USD1.2 billion.

In operational terms AT&T Wireless added a net 2.8 million new customers, quarter-on-quarter, for a total of 95.5 million at the end of December. Of the new additions 400,000 were post-paid subscribers (compared to 1.3 million in the same period one year earlier), and 307,000 pre-paid subscribers. Post-paid average revenue per user (ARPU) increased 2.2% to USD62.9, representing the eighth consecutive quarter displaying a year-on-year increase. One the fixed line side, residential voice connections dropped 11.5% to 24.2 million. Its U-verse high speed broadband service posted a net gain of 210,000 fixed line broadband connections in the quarter, to finish December with 17.75 million broadband subscribers.

AT&T CEO Randall Stephenson commented: ‘We had another strong quarter and a solid year. Our major growth platforms – mobile broadband, U-verse and strategic business services – continue to set the pace for the industry, and we’re still early in the growth cycle for all of these areas. Progress across these growth platforms, combined with continued progress on our cost-improvement initiatives, drive our positive outlook. 2011 is the year when we’ll take mobile broadband to the next level. We’re seeing 4G speeds today in areas of key markets, we’ve accelerated our Long Term Evolution (LTE) deployment plans, and we expect to add 20 4G devices to our line-up this year. AT&T has led the mobile broadband revolution, and we are well positioned to drive the industry’s next waves of innovation and growth’.

United States, AT&T